The Stars Group has agreed a deal with the minority shareholders of its Australian-based sports betting business BetEasy, which sees the firm acquire the remaining 20 per cent interest in the company for AU$151m (£79.5m).
As part of this agreement, Stars has also agreed to pay AU$100m (£52.6m) to settle a previously disclosed performance payment under the agreements for its 2018 acquisition of the initial 80 per cent interest.
“I’m delighted to reach this agreement for our BetEasy business,” commented Rafi Ashkenazi, chief executive officer of The Stars Group. “The launch of BetEasy through our acquisitions of CrownBet and William Hill Australia in 2018 created one of the leading operators in Australia and increased our exposure to a high-growth regulated market.
“Matt Tripp’s entrepreneurial spirit and vision has guided BetEasy since he founded the business, and we are glad he will oversee the transition as non-executive president.”
Stars stresses that it currently expects to complete the minority acquisition within 90 days following either the issuance of The Stars Group’s audited financial statements for the year-ended December 31, 2020, or the completion of the previously announced board-recommended all share combination with Flutter Entertainment.
In addition to the acquisition of the remaining interest, The Stars Group will settle the performance, or earn-out, payment to the minority shareholders for AUD$100m.
The performance payment, which could have reached AU$232m (£122.2m), was subject to certain performance conditions primarily related to BetEasy’s EBITDA. The Stars Group will also repay AU$56.9m (£29.9m) of outstanding BetEasy minority shareholder loans.
Matt Tripp, BetEasy’s CEO, will provide ongoing leadership as the non-executive president beginning January 1, 2020, with Andrew Menz, who previously served as BetEasy’s director of strategy and regulatory affairs, as his successor in the CEO role.
“I’m pleased to see our long-term succession plan come to fruition. Andrew Menz brings deep commercial and regulatory experience which leaves BetEasy in a strong position to continue delivering profitable growth,” Tripp said.
“I know that this business, which we founded back in 2013, is in very capable hands with a strong executive team and the backing of The Stars Group, who have been terrific partners and global leaders in this industry.”
